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March 18, 2013
Publication - Insurance Coverage - Insurance
The Washington Supreme Court joined a minority of jurisdictions that hold that insurers may not unilaterally reserve the right to seek reimbursement for defense costs paid in defending non-covered claims through a reservation of rights letter. In National Surety Corp. v. Immunex Corp., the Washington Supreme Court, in a five to four decision, held that insurers defending under a reservation of rights may not seek reimbursement for defense costs from the insured, even if there is a determination that the insured is not entitled to coverage under the policy No. 86535-3 (March 7, 2013). In so holding, the court recognized that, upon a showing of actual and substantial prejudice resulting from an insured’s delayed tender, an insurer could minimize or avoid liability for defense costs.
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March 18, 2013
Press Release - Insurance Corporate & Regulatory, Insurance Coverage, Private Client Services, Real Estate, Subrogation & Recovery
Six attorneys from the firm of Edwards Wildman are joining Cozen O'Connor, in practice areas that include trusts and estates/private client services, real estate, insurance coverage, reinsurance, insurance corporate and regulatory and litigation.
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March 18, 2013
Publication - Electronic Discovery & Practice Advisory Services
The era when a lawyer can competently practice without understanding a client's electronic data is rapidly drawing to a close. New York's Office of Court Administration has recommended amendments to the rules governing preliminary conferences in non-Commercial Division cases that should radically reduce the number of cases where one can stand in front of a judge like Saturday Night Live's fabled unfrozen caveman lawyer, proudly ignorant of electronic discovery issues.
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March 15, 2013
News - Subrogation & Recovery
Vince McGuinness joins a roundtable discussion in Law Practice Today Webzine on the topic of what law firms expect from new lawyers.
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March 15, 2013
Publication - Bad Faith, Insurance Coverage - Insurance
When an insured sues an insurer for bad faith, how much of the claims file maintained by the insurer is discoverable? In a 5-4 decision, the Washington Supreme Court recently weakened insurers’ ability to protect confidential communications with their attorneys in first-party claims where the insured has alleged bad faith. Cedell v. Farmers Insurance Company of Washington, No. 85366-5 (February 22, 2013). The court held that, in the context of a first-party claim for bad faith claim handling and processing, courts must apply a presumption that there is no applicable attorney-client privilege. The court further held that an insurer would be entitled to overcome the presumption by showing that its counsel was providing legal advice as to the insurer’s potential liability and was not acting in the insurer’s “quasi-fiduciary” function. Upon this showing, the insurer is entitled to an in camera review where the trial court will determine if the privilege applies, subject to the insured’s assertions that the privilege does not apply due to an exception, including the civil fraud exception.
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March 14, 2013
Publication - Business, Corporate
On January 23, 2013, the Pennsylvania Benefit Corporation Act (the Act) became effective. The Act authorizes a new type of for-profit business corporation known as a benefit corporation. Pennsylvania is now one of 12 states that have passed laws creating benefit corporations.
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March 14, 2013
Publication - Employment Litigation, Immigration Policy & Strategy, Labor & Employment
On March 8, 2013, the U.S. Citizenship and Immigration Services (USCIS) issued a new Employment Eligibility Verification Form, Form I-9, and a revised Handbook for Employers, M-274. The main changes to the new Form are that it contains further instructions on how to complete the Form I-9 and also expands the Form itself to two pages. Employers should review the revised Handbook and may begin using the new Form I-9 immediately both for new hires and for work authorization reverification. USCIS is allowing employers two months to transition to the new Form I-9, but beginning on May 7, 2013, employers must use the new Form I-9. Employers do not need to complete a new Form I-9 for current employees with a proper I-9 on file.
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March 14, 2013
Publication
Congress funds a variety of causes to the exclusion of others. That is permissible and necessary. Congress cannot, however, condition its spending on the abandonment of recipients' constitutional rights.
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March 12, 2013
Press Release - Labor & Employment
Lynette will join current committee co-chair Kimya Johnson to spearhead the firm’s efforts to promote diversity and inclusion.
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March 12, 2013
Press Release
Thomas Wilkinson, along with his wife Kathleen, will receive the Gerald Abraham Award for Service to Villanova University School of Law at the Villanova Law Alumni Association's annual Alumni Reception and Awards Program on March 21 at the National Constitution Center.
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March 11, 2013
Publication - Subrogation & Recovery - Insurance
It may be surprising to learn that currently there is no federal
law requiring the installation of fire sprinklers in residential
structures. Despite most states and municipalities requiring
fire sprinkler systems in commercial structures, few states
or municipalities have tried to implement this requirement in
residential structures. In 2011, U.S. fire departments responded
to 370,000 home structure fires causing $6.9 billion in direct
damage. According to the 2009 American Housing Survey, 4.6
percent of occupied homes (including multi-unit) had sprinklers,
up from 3.9 percent in 2007.
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March 08, 2013
Publication - Insurance Coverage, Professional Liability Insurance Coverage - Insurance
In Amgen, Inc. v. Connecticut Retirement Plans and Trust Funds, No. 11-1085 (Slip Op. Feb. 27, 2013), the U.S. Supreme Court, in a 6-3 majority opinion (Ginsburg, J.), affirmed the U.S. Court of Appeals for the 9th Circuit’s ruling that a securities class action plaintiff need not prove materiality of alleged misrepresentations or misleading omissions as a prerequisite to class certification under Fed. R. Civ. P. 23. Justices Kennedy, Scalia, and Thomas dissented. Justice Alito concurred with the majority but added a separate and important note (discussed below). The Court’s decision lowers the bar for investors seeking to obtain class certification, which has significant implications for D&O insurers, companies, their Directors and Officers (Ds and Os), and securities fraud plaintiffs alike. The Court’s ruling in Amgen also settles a split among the 2nd, 3rd, 7th, and 9th Circuits. Although the ruling is clearly favorable to securities fraud class action plaintiffs, the four concurring and dissenting justices appear willing to entertain arguments over the continued validity of the fraud-on-the-market presumption, which could drastically alter the landscape for securities class actions.
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March 07, 2013
Publication - Insurance Coverage - Insurance
Following considerable public comment, the Texas Supreme Court revised and issued final approval of new rules providing for expedited trials and dismissal of baseless claims. Despite pleas from various factions, however, the new rules maintain their mandatory nature. The revisions do, however, contain material changes to the Alternative Dispute Resolution provision of new Rule 169 of the Texas Rules of Civil Procedure.
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March 07, 2013
Publication - Health Care & Life Sciences, Technology, Privacy & Data Security - Health Care & Life Sciences
On January 25, 2013, the Office of Civil Rights (OCR) of the Department of Health & Human Services (HHS) published the long-awaited omnibus final regulation governing health data privacy, security and enforcement (Omnibus Rule). The Omnibus Rule is a group of regulations that finalizes four sets of proposed or interim final rules, including changes to the Health Insurance Portability and Accountability Act (HIPAA) Privacy and Security Rules mandated by the Health Information Technology for Economic and Clinical Health (HITECH) Act and proposed in 2010; changes to the interim final breach notification rule; modifications to the interim final enforcement rule; and implementation of changes to the Genetic Information Nondiscrimination Act of 2008 (GINA). The Omnibus Rule goes into effect on March 26, 2013, and compliance is required by September 23, 2013. As expected, the Omnibus Rule did not finalize the May 31, 2011 proposed regulation regarding accounting for disclosures.
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March 07, 2013
News - Government Relations - Cozen O'Connor Public Strategies, Health Care & Life Sciences
Attorneys Mark Alderman, Mark Gallant, Colin Roskey and Howard Schweitzer are highlighted in this article on Cozen O'Connor's growth in the Health Law and Public Strategies Groups.
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March 05, 2013
Publication - Intellectual Property, Trademark & Copyright
Brand owners should use a multi-pronged strategy to combat knock-off goods. Although counterfeiting is often perceived as a victimless crime, it has significant economic and reputational costs for brand owners. In 2012, U.S. Customs and Border Protection seized counterfeit goods worth $1.26 billion and shut down 697 websites involved in trafficking counterfeit goods.
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March 05, 2013
Publication - Insurance Coverage - Insurance
On February 15, 2013 a Pennsylvania federal district court held that the shipment of defective drywall from China to the United States constituted one “occurrence” for purposes of insurance coverage, and the occurrence took place when the damage caused by the drywall manifested itself in the residences or buildings of the underlying plaintiffs. With this ruling, Pennsylvania joins Virginia as one of the few states to opine regarding the number of occurrences in the Chinese drywall context.
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March 04, 2013
Publication - Employment Litigation, Labor & Employment
Effective February 28, 2013, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) rescinded its much criticized 2006 Compensation Standards and Voluntary Guidelines (Compensation Standards) utilized in pay discrimination compliance evaluations of federal contractors. The Compensation Standards essentially had applied one analytic approach to pay discrimination, regardless of industry, job type or other data specific to the federal contractor’s pay practices. Not surprisingly, the OFCCP claims that the narrowly defined "cookie cutter" compliance evaluation procedures imposed by the Compensation Standards impeded the OFCCP’s investigation efforts.
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March 04, 2013
Publication - Business
On January 24, the Federal Energy Regulatory Commission
(FERC) approved a significant settlement addressing the base rate treatment for planned actions to overhaul the aging Columbia Gas Transmission, LLC (Columbia) pipeline system. While by its own terms the settlement is not considered precedential, FERC’s approval of the settlement is noteworthy for operators of older natural gas transmission and distribution pipelines and hazardous liquids pipelines systems. These pipeline systems may contain bare steel or cast iron, may have inadequate cathodic protection, may be subject to settling or other environmental conditions that have placed significant stress on pipe, may not be “piggable,” or otherwise may be at risk of reduced operating pressure in the face of potentially heightened requirements for establishing maximum allowable operating pressure. As increased focus on pipeline integrity management drives capital expenditures and operating and maintenance priorities, these transmission and distribution pipeline operators (representing a majority of pipeline mileage in the United States) must engage in thoughtful planning for pipeline facility repairs, upgrades and replacements and identify cost recovery mechanisms that work best for their specific circumstances.
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March 01, 2013
Publication - Labor & Employment
On February 6, 2013, the Department of Labor (DOL), Wage and Hour Division, published a Final Rule amending the regulations for the Family and Medical Leave Act of 1993 (FMLA). The 2013 Final Rule sets forth new regulations implementing amendments made to the FMLA by the National Defense Authorization Act for Fiscal Year 2010 (NDAA FY 2010).
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